Huntington Bank has committed $150 million to affordable housing projects across Ohio between 2017-2018, with at least 30% of that dedicated to projects in Northeast Ohio.
The new allocations bring total investments made in affordable housing through a partnership with Ohio Capital Corp. for Housing (OCCH) that was launched in 2010 to $513 million over the past seven years, which has impacted an estimated 15,000 low-to-moderate-income Ohio residents, according to the company.
Clearly highlighting the Greater Cleveland market, Huntington announced the new investments Wednesday, March 22, at Church Square Commons, a senior housing complex in the Euclid Corridor, alongside community leaders including OCCH president Hal Keller and Cuyahoga County executive Armond Budish.
A Huntington spokesperson said that of the $150 million, $45 million will be invested in 11 Northeast Ohio affordable housing developments with more than 450 units, with at least $25 million of that earmarked for investments in Akron proper, which lost its only regional bank with a corporate headquarters there when Huntington acquired FirstMerit Bank.
Huntington commits that funding to affordable housing as demand for those projects could potentially diminish some because of the new presidential administration — Donald Trump has touted passing tax code reforms that could impact appetites for Low-Income Housing Tax Credits — and the outlook for rising interest rates.
For affordable housing lenders, those possibilities, compounded by rising construction costs, are expected to create budget gaps for developers — a topic Affordable Housing Finance recently explored.
But Steinour seems to view that as a motivation for committing funds now. While the financing market for projects could be impacted, the need for residents remains high.
"When we learned that affordable housing development was stalling because of potential changes to the federal tax code, we immediately responded. We believe it is vital to continuously support adequate housing for those who require it most," said Huntington president and CEO Steve Steinour in a news release.
"Ohio has been our home for the past 151 years and we remain committed to investing in neighborhoods and affordable housing to help people lead better lives," Steinour said. "We hope our new commitment will help accelerate the rate of investment by others in partnership with OCCH to keep Ohio affordable housing starts and refurbishment projects on track."
In a short interview, Steinour said the bank chose Cleveland for its announcement because of the need for projects and the proximity of nonprofits that work on affordable housing, which help funnel tax-credit investments to Northeast Ohio.
"The neighborhoods are transitioning, some faster than others," he said. "Slavic Village has had a lot of construction closing out now. The Euclid Avenue corridor is having an impact. We thought it was important at a moment when things might be stalling a bit to try and inject a little energy here to keep things moving."
According to Huntington, the 2017-2018 commitment will help nearly 5,600 Ohio residents statewide, generate approximately 3,700 new or refurbished affordable housing units and is anticipated to support 2,800 construction jobs.
"Affordable housing availability is a benchmark for quality of life no matter where we call home, and we must continue to deliver quality, safe housing for all Cleveland residents regardless of economic status," Budish said in a statement. "Investments like Huntington's are critical to maintaining affordable housing developments and creating new affordable housing opportunities to help those in need to improve the quality of neighborhoods throughout Northeast Ohio."
There's also a sense that Huntington's investment could help others come forward and add to the pool of money at OCCH supporting affordable housing projects throughout Ohio.
"What we're doing in partnering with Ohio Capital is to serve as an example for them to bring others in while this tax bill is pending," Steinour said. "We're in a state of economic recovery. The cities are doing well. This is the time to invest and continue investments and try to help those who are disadvantaged."
"The best way to make a difference and help those in need is through partnership. Huntington has stepped forward throughout the past decade to champion affordable housing development in Ohio," added Keller in a statement. "Huntington is the largest tax credit investor in the state and has consistently invested significant capital providing very substantial support to help ensure affordable, secure housing for thousands of Ohio families."
Huntington, which grew to $100 billion in assets with is FirstMerit acquisition, also publicly committed $16.1 billion in total investments and loans to communities and business across its expanded customer base through 2021 as part of that deal. Those commitments followed $25 million dedicated to company-wide grants to be made in the same time frame as part of a new philanthropy program and a separate $25 million committed to Akron, Canton and Flint, Mich. communities that were promised when the bank announced its FirstMerit deal last January.